Jeff Pierce's  Instablog

Jeff Pierce
Send Message
I’m a swing trader of momentum stocks with a holding period of anywhere from a few hours to a few months. I run a number of screens to locate the strongest/weakest stocks out there, using technical analysis to determine my entries and exits. Trying to calculate the intrinsic value of stocks in... More
My company:
All About Trends
My blog:
My book:
zentrader newsletter
  • Low Volatility Leads To High Volatility 0 comments
    Mar 22, 2012 9:57 AM | about stocks: VIXY, QQQ, DIA

    An interesting observation I noticed regarding the ATR on the general markets and the volatility index below - see how the ATR (average true range) on the 3 charts below have been getting tighter and leveling off. That means that the amount these charts are moving are lessening each day and the longer this goes on the more violent a move is going to be.

    This doesn't say which way these charts are going to move but it suggests that a big move is coming and I don't think it's to far off when you figure how long this pattern has been forming. Given how stretched the markets are and how low, or complacent the VIX is, it's not hard to see a correction coming, along with a rise in volatility.

    Stocks: VIXY, QQQ, DIA
Back To Jeff Pierce's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.